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Developing countries like Nigeria are now turning into key markets for Chinese manufacturers.
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This came after US President Donald Trump imposed trade tariffs on their exports.
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Producers claim that ever since Washington increased taxes on Chinese imports by 145%, orders from the United States for their products have disappeared.
The SANGGRALOKA ID.ng journalist, Zainab Iwayemi, possesses five years of experience reporting on topics such as the economy, technology, and capital markets.
After U.S. President Donald Trump imposed trade tariffs on Chinese products, the country’s manufacturing companies have redirected their attention towards Nigeria and other rapidly growing markets.
On April 2, Trump initiated bilateral trade discussions with around 75 countries and introduced a 46% duty on Vietnam along with an 17% levy on the Philippines. Subsequently, he lowered these rates to 10% each for the next quarter.
Manufacturers assert that orders from the United States for their goods have vanished following Washington’s decision to raise tariffs on Chinese imports by 145%.
“It’s a matter of life and death because 60-70% of our business is with American clients,” marketing manager of Conmo Electronic Co, Candice Li SAID in a survey obtained by Channels Television on Tuesday, adding, “Goods cannot be exported and money cannot be collected. This is very severe.”
Most of the exporters thatReuters reached out to reported that US orders have either been delayed or stopped entirely, raising concerns for the world’s second-largest economy, where growth last year heavily relied on sustaining a trillion-dollar trade surplus.
According to Kobe Huang, who works as a sales representative for Shenzhen Landun Environmental Technology—a company specializing in water purifiers and intelligent toilets—sales across Europe are currently expanding. However, he notes that the American market remains stagnant.
The U.S. clients and distributors haven’t withdrawn their orders, he stated. “They have requested us to wait. We are waiting.”
No other country matches China’s yearly sales of nearly $400 billion worth of products to the United States.
Moreover, despite Trump’s tariffs being considerably less extensive worldwide, they are likely to diminish global demand over the coming months. This effect could also lessen international interest in purchasing Chinese products.
China exports to Nigeria
China’s shipments to countries like Nigeria have surged significantly despite the taxes levied against the nation.
China is expected to announce a first-quarter growth rate of around 5% on Wednesday, fueled primarily by strong export performance, as per an AFP poll.
A number of exporters mentioned that they have been broadening their market reach beyond the United States or shifting their production facilities away from China.
According to Henry Han, the sales manager at Apexto Electronics Co., which manufactures SSDs and microSD flash drives, the U.S. market currently accounts for just 10% of their direct sales, down from 30% before the pandemic began.
To avoid the tariffs, numerous clients now send components for assembly in a third country.
After Trump imposed tariffs, Skechers’ order of 30,000 speakers destined for their U.S. outlets was stopped, as stated by David Du, the sales manager at speaker maker Zealot. Nonetheless, he mentioned that he can depend on other markets.
In 2015, Zealot experienced a considerable and unexpected surge in popularity when a multi-functional device combining a speaker, power bank, and emergency light became widely sought after in Nigeria.
He mentioned that the Nigerian market, making up 40% of total sales and receiving 45 shipping containers monthly, has grown to be twice the size of the U.S. market.
“In Nigeria, we measure up to JBL,” Du stated, referencing the California-based audio equipment company.
Items exported to Nigeria
China focuses heavily on exporting various manufactured products to Nigeria, particularly machinery, cars, and electrical as well as electronic devices.
In 2023, the leading exports included automobiles (excluding railway or tramway ones) worth $1.34 billion, machinery along with nuclear reactors and boilers valued at $2.13 billion, and electrical and electronic devices totaling $2.88 billion.
From January to September 2024, China saw a 36.1% annual rise in imports from Nigeria, pushing the trade volume between both nations to a record-high of $15.1 billion (approximately N25.7 trillion).
The overall U.S. tariff rate is currently at its peak in 100 years.
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It has been reported that US President Donald Trump’s postponement of more severe tariffs might provide a temporary reprieve for Wall Street. However, experts argue that his measures—which disproportionately affect China—have pushed the typical U.S. effective tariff rate to its peak level in more than 100 years.
In addition to implementing broad new tariffs of 10 percent on products from most U.S. trading partners, Trump has reinstated his administration with significant duties on imported steel, aluminum, and automobiles since returning to the White House.
However, on Wednesday, he retreated from proposing even higher tariffs on numerous economies such as the European Union and the Vietnamese manufacturing center, after witnessing a significant downturn in U.S. government bond markets. Nonetheless, he reinforced his stance on taking actions against China.